89.5k views
4 votes
True or false. if spending exceeds output, real gdp will decline as firms cut back on production.

User Ahala
by
7.7k points

1 Answer

4 votes

Answer: false

Explanation: When spending exceeds output, it means that the economy is not in equilibrium. Real GDP will increase because firms expand their output to reach an equilibrium state where spending is equal to output.

User Belek
by
8.4k points

No related questions found